Question

(001) Fall 2 Aimo Bomborin ciples of Macroeconomics 0:52:31 Shannon wants to open a frozen yogurt shop in Wilson, NC. She needs $100,000 to start her business. She borrows $50,000 from Mary Grace. It is a five-year loan, and it pays five percent interest, annually, and, at the end of five years, Shannon promises to pay back the original $50,000. Shannon receives another $50,000 from Matt, and she promises Matt fifty percent of the firm's profits indefinitely Ceteris paribus, if follows that, in essence, Mary Grace is a and Matt is a Select one: a stockholder; bondholder b. stockholder, stockholder O c. bondholder; stockholder d. bondholder; bondholder Next page

Answer 1

Since Money is borrowed from Mary Grace at specific terms and will be repaid with interest, Mary Grace is a Bondholder and since Matt is getting 50% equity in the firm, Matt is a Stockholder Hence, Option C is correct